South Africa’s low growth leaves citizens poorer than global average, Investec says

South Africa’s anaemic economic growth since 2010 has left its population significantly poorer than the global average, according to Investec Wealth & Investment International.

“You can see a decoupling of South Africa’s gross domestic product per capita from the rest of the world in 2010,” Osagyefo Mazwai, investment strategist at Investec Wealth & Investment International, which manages R530-billion in assets, said in an interview.

South Africa’s GDP per capita adjusted for purchasing power parity was $15 194 in 2023, compared with $22 850 globally.

Growth in Africa’s largest economy has been hampered by sustained power outages, graft, crime, disintegrating infrastructure and foreign-policy missteps.

Low growth has meant its economy is 37% smaller than it would have been had the country tracked its emerging-market peers, and it may have lost out on 5 trillion rand in taxes since 2010 that could have boosted its ability to fund services and lower its debt-to-GDP ratio, Investec said.

For South Africa to return to the global average